Energy Transfer (ET) Q3 Earnings Lag, Revenues Top Estimates


Energy Transfer LP (ET Free Report) reported third-quarter 2018 earnings of 32 cents per unit, lagging the Zacks Consensus Estimate of 59 cents by 45.8%. However, earnings were ahead of the year-ago figure of 22 cents by 45.5%.

Total Revenues

In the quarter under review, Energy Transfer’s total revenues came in at $14,514 million, beating the Zacks Consensus Estimate of $14,291 million by 17.7%. Total revenues were also up 45.4% from the year-ago figure of $9,984 million.

Operational highlights

Total costs and expenses amounted to $12,811 million, up 41.5% from $9,053 million in the year-ago quarter. The increase was primarily due to higher cost of goods sold.

Operating income came in at $1,703 million in the third quarter, up 82.9% from the year-ago figure of $931 million.

Total interest expenses increased 9.2% to $535 million from $490 million a year ago.

Financial Condition

As of Sep 30, 2018, Energy Transfer had current assets of $6,353 million, down from the 2017-end level of $6,528 million.

On Sep 30, 2018, the company had long-term debt (excluding current maturities) of $31,198 million, down from the 2017-end level of $32,687 million.

Performance of Peers

Among other players from the same industry that have reported third-quarter earnings so far, Plains All American Pipeline, L.P. (PAA Free Report) and ONEOK Inc. (OKE Free Report) beat the Zacks Consensus Estimate by 16.2% and 5.6%, respectively, while Buckeye Partners L.P. (BPL Free Report) missed the same by 16.2%

Zacks Rank

Energy Transfer currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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